MHA 710 - Healthcare Economics - Exam
3 2025/2026 Exam Questions and
Detailed Answers | Get it 100% Correct
Answers
In order to be a successful price discriminator, a provider must have a
degree of market power (depicted by a downward-sloping demand curve)
and meet what other condition(s)?
a. Customers cannot know that different prices are being charged.
b. Markets must be segmentable, identifying differences in ability to pay.
c. Demand for services must be relatively price elastic.
d. Profitable service expansion opportunities must be limited.
e. The provider must have excess capacity to accommodate the extra
business. - 🧠 ANSWER ✔✔b. Markets must be segmentable, identifying
differences in ability to pay.
Legislation considered by Congress to restrict legal immigration would:
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
1
,a. surprise many policymakers because Congress finds it difficult to agree
on much of anything regarding immigration.
b. improve employment prospects for native-born Americans.
c. have little effect on medical markets, as so few physicians practicing
medicine in the United States are foreigners.
d. raise the costs of operating in many of the nation's rural and inner-city
hospitals.
e. allow more Americans trained abroad to compete for openings in United
States' residency programs. - 🧠 ANSWER ✔✔d. raise the costs of operating
in many of the nation's rural and inner-city hospitals.
Physicians who own their own diagnostic testing facilities tend to order
more tests, charge higher fees for them, and have higher total bills to
patients. This practice of self-referral is an example of:
a. cognitive dissonance.
b. physician-induced demand.
c. moral hazard.
d. adverse selection.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
2
,e. res ipsa loquitur. - 🧠 ANSWER ✔✔b. physician-induced demand.
Which of the following statements is true concerning the trend in
community hospital care between inpatient and outpatient services since
the mid-1980s?
a. Both inpatient and outpatient services have been declining.
b. There has been no noticeable trend in either inpatient or outpatient
services.
c. Both inpatient and outpatient services have been growing.
d. Outpatient services have been growing, while inpatient services have
been declining.
e. Outpatient services have been declining, while inpatient services have
been growing. - 🧠 ANSWER ✔✔d. Outpatient services have been growing,
while inpatient services have been declining.
The amount that Medicare pays a hospital for treating a Medicare patient is
determined:
a. at the point when the diagnosis is made.
b. at the time of admission to the hospital.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, c. before the patient sees a physician.
d. after the hospital bill is reviewed by Medicare auditors.
e. after medical services are provided. - 🧠 ANSWER ✔✔a. at the point
when the diagnosis is made.
Compared to the not-for-profit organizational form, the for-profit
environment
a. allows for the transfer of assets.
b. lacks a profit motive.
c. gives shareholders higher returns on their investment
d. provides patients with higher quality of care.
e. does not provide charity care. - 🧠 ANSWER ✔✔a. allows for the transfer
of assets.
What is the most significant cost of attending medical school?
a. Books and incidentals
b. Room and board
c. Tuition and fees
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
4
3 2025/2026 Exam Questions and
Detailed Answers | Get it 100% Correct
Answers
In order to be a successful price discriminator, a provider must have a
degree of market power (depicted by a downward-sloping demand curve)
and meet what other condition(s)?
a. Customers cannot know that different prices are being charged.
b. Markets must be segmentable, identifying differences in ability to pay.
c. Demand for services must be relatively price elastic.
d. Profitable service expansion opportunities must be limited.
e. The provider must have excess capacity to accommodate the extra
business. - 🧠 ANSWER ✔✔b. Markets must be segmentable, identifying
differences in ability to pay.
Legislation considered by Congress to restrict legal immigration would:
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
1
,a. surprise many policymakers because Congress finds it difficult to agree
on much of anything regarding immigration.
b. improve employment prospects for native-born Americans.
c. have little effect on medical markets, as so few physicians practicing
medicine in the United States are foreigners.
d. raise the costs of operating in many of the nation's rural and inner-city
hospitals.
e. allow more Americans trained abroad to compete for openings in United
States' residency programs. - 🧠 ANSWER ✔✔d. raise the costs of operating
in many of the nation's rural and inner-city hospitals.
Physicians who own their own diagnostic testing facilities tend to order
more tests, charge higher fees for them, and have higher total bills to
patients. This practice of self-referral is an example of:
a. cognitive dissonance.
b. physician-induced demand.
c. moral hazard.
d. adverse selection.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
2
,e. res ipsa loquitur. - 🧠 ANSWER ✔✔b. physician-induced demand.
Which of the following statements is true concerning the trend in
community hospital care between inpatient and outpatient services since
the mid-1980s?
a. Both inpatient and outpatient services have been declining.
b. There has been no noticeable trend in either inpatient or outpatient
services.
c. Both inpatient and outpatient services have been growing.
d. Outpatient services have been growing, while inpatient services have
been declining.
e. Outpatient services have been declining, while inpatient services have
been growing. - 🧠 ANSWER ✔✔d. Outpatient services have been growing,
while inpatient services have been declining.
The amount that Medicare pays a hospital for treating a Medicare patient is
determined:
a. at the point when the diagnosis is made.
b. at the time of admission to the hospital.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, c. before the patient sees a physician.
d. after the hospital bill is reviewed by Medicare auditors.
e. after medical services are provided. - 🧠 ANSWER ✔✔a. at the point
when the diagnosis is made.
Compared to the not-for-profit organizational form, the for-profit
environment
a. allows for the transfer of assets.
b. lacks a profit motive.
c. gives shareholders higher returns on their investment
d. provides patients with higher quality of care.
e. does not provide charity care. - 🧠 ANSWER ✔✔a. allows for the transfer
of assets.
What is the most significant cost of attending medical school?
a. Books and incidentals
b. Room and board
c. Tuition and fees
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
4
